Amazing Credit Cards

Top 10 Best Secured/FD-Based Credit Cards In India

What Are FD-Backed Credit Cards? Understanding Secured Credit Cards in India

FD-backed credit cards are financial products that use your fixed deposit as collateral, allowing banks to issue you a credit card even without an established CIBIL score or credit history. These secured credit cards give you the spending flexibility of regular credit cards while helping you build a strong credit profile.

For many Indians starting their credit journey, these cards serve as the perfect stepping stone toward premium unsecured credit cards.

How FD-Backed Credit Cards Work: A Detailed Breakdown

The process is straightforward but understanding each step helps maximize the benefits:

  1. Open a Fixed Deposit: Visit your preferred bank or use their online banking platform to create a fixed deposit of the minimum required amount (ranging from ₹2,000 to ₹50,000 depending on the bank)
  2. Apply for the Secured Credit Card: Submit your application specifying you want a credit card against your fixed deposit
  3. Credit Limit Assignment: The bank typically assigns 80-90% of your FD value as your credit limit (Example: A ₹20,000 FD might give you a ₹18,000 credit limit)
  4. Use Like a Regular Credit Card: Make purchases, earn rewards, and build your credit history while your FD continues earning interest
  5. Timely Repayments: Each on-time payment strengthens your CIBIL score, eventually making you eligible for unsecured credit cards
  6. Emergency Backup: If you ever default on payments, the bank can recover dues from your fixed deposit, preventing long-term damage to your credit score

Key Benefits of Choosing an FD-Backed Credit Card in 2024

1. No Credit History Required

Unlike regular credit cards that demand a good CIBIL score (typically 750+), FD-backed credit cards have nearly guaranteed approval regardless of your credit history.

2. Substantial Credit Limits Based on Your FD

Most Indian banks offer generous credit limits of up to 90% of your fixed deposit value, giving you significant spending power relative to your investment.

3. Your FD Continues Earning Interest

While your fixed deposit secures your credit card, it continues earning the standard FD interest rate. This means you're not losing potential earnings while building credit.

4. Perfect for Credit Score Building

Every monthly payment reported to CIBIL helps establish your creditworthiness. Most users see significant CIBIL score improvements within 6-12 months of responsible usage.

5. No Income Documentation Needed

Unlike unsecured cards that require salary slips and income tax returns, FD-backed credit cards typically waive income documentation requirements, making them accessible to:

  • Freelancers with irregular income
  • Students without formal employment
  • Homemakers managing household finances
  • Self-employed individuals with complex income structures

6. Comprehensive Rewards Programs

Many secured credit cards offer reward structures comparable to regular credit cards, including:

  • Reward points on spending
  • Cashback on specific categories
  • Dining and entertainment discounts
  • Fuel surcharge waivers at petrol pumps
  • Welcome bonuses and milestone benefits

7. Low Entry Barriers

Some fintech partnerships now offer secured credit cards with fixed deposits as low as ₹2,000, making credit building accessible to virtually anyone.

Top FD-Backed Credit Cards in India for 2024: Detailed Comparison

1. Kotak 811 #DreamDifferent Credit Card

  • Minimum FD Required: ₹10,000
  • Annual Fee: ₹0 (Lifetime Free)
  • Credit Limit: Up to 90% of FD value
  • Rewards Structure:
    • 2 reward points per ₹100 spent on online transactions
    • 1 reward point per ₹100 spent on offline transactions
    • Welcome bonus of 500 reward points on card activation
  • Application Process: Apply through Kotak's 811 digital account or visit a Kotak Mahindra Bank branch

2. IDFC First WOW Credit Card (FD-Backed)

  • Minimum FD Required: ₹20,000
  • Annual Fee: ₹0 (Lifetime Free)
  • Credit Limit: Up to 85% of FD value
  • Ideal For: International shoppers, frequent travelers
  • Rewards Structure:
  • 4X reward points on all transactions (domestic and international). 2,000 welcome points on spending ₹10,000 within 90 days
  • Zero foreign exchange markup fee (saving approximately 3.5% on international transactions)
  • Buy-one-get-one movie ticket offers every weekend
  • Fuel surcharge waiver up to ₹150 per month

Application Process: Apply through IDFC FIRST Bank's website or nearest branch

3. SBI Unnati Credit Card

  • Minimum FD Required: ₹25,000
  • Annual Fee: Free for first 4 years (₹499 + GST thereafter)
  • Credit Limit: Up to 85% of FD value
  • Ideal For: SBI account holders, first-time credit card users
  • Rewards Structure:
  • 1 reward point per ₹100 spent (all categories)
  • 5X reward points on utility bill payments
  • Welcome bonus of 300 reward points
  • ₹500 cashback on reaching annual spending threshold of ₹50,000
  • 1% fuel surcharge waiver across all petrol pumps in India

Application Process: Apply through SBI YONO app or visit any SBI branch

3. HDFC Bank Millennia Credit Card (FD Backed)

  • Cashback on spending in shopping, dining, and travel.
  • Excludes fuel, rent, and government-related transactions from cashback eligibility.
  • Secured credit card issued against FD, ideal for digital transactions.

4. HDFC Bank MoneyBack+ Credit Card (FD Backed)

  • CashPoints on transactions with Amazon, Flipkart, Swiggy, and BigBasket.
  • Points redeemable for cashback, vouchers, and travel bookings.
  • 500 CashPoints as a welcome benefit and milestone rewards available.

5.Tata Neu Plus HDFC Bank Credit Card (FD Backed)

  • NeuCoins rewards on Tata brand purchases and general transactions.
  • Higher rewards for purchases on the Tata Neu app.
  • Complimentary domestic airport lounge access.
  • Annual fee waiver on spending ₹1 lakh annually.

6.Tata Neu Infinity HDFC Bank Credit Card (FD Backed)

  • 10% NeuCoins on Tata purchases, 5% on partner brands, and 1.5% on UPI spends.
  • Complimentary domestic and international lounge access.
  • 1% fuel surcharge waiver.
  • Annual fee waiver on spending ₹3 lakh annually.

7. HDFC Diners Club Privilege Credit Card (FD Backed)

  • Complimentary BookMyShow movie tickets.
  • Free access to domestic and international airport lounges.
  • Low foreign currency markup fee (1.99%) for international transactions.
  • Welcome benefits include Swiggy One & Times Prime memberships.

8. HDFC Regalia Gold Credit Card (FD Backed)

  • Premium travel benefits with complimentary MakeMyTrip Gold & Swiggy One memberships.
  • Access to domestic and international airport lounges.
  • Reward points on retail transactions, redeemable for flights, hotels, vouchers, and air miles.

9. IndianOil HDFC Bank Credit Card (FD Backed)

  • 5% Fuel Points on Indian Oil fuel purchases.
  • Additional Fuel Points on groceries and bill payments.
  • Redeemable Fuel Points for up to 50 liters of free fuel annually.
  • 1% fuel surcharge waiver.

10.HDFC Bank Freedom Credit Card (FD Backed)

  • CashPoints on Swiggy, BookMyShow, BigBasket, and Uber transactions.
  • 500 bonus CashPoints as a welcome offer.
  • 1% fuel surcharge waiver.
  • Annual fee waiver available upon spending ₹50,000 per year.

11. HDFC Bank BizFirst Credit Card (FD Backed)

  • Earn CashPoints on EMI spends, utility bills, and digital payments.
  • ₹250 welcome voucher for new users.
  • Annual fee waiver upon spending ₹50,000 per year.

12.HDFC Bank BizPower Credit Card (FD Backed)

  • 5X Reward Points on tax, vendor, and business payments.
  • Complimentary airport lounge access for business travellers.

Eligibility List For HDFC Secured Credit Cards

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*Source Reddit r/CreditCardsIndia: For Post Link Click Here

Portal For Applying HDFC Secured Credit Cards: Click Here

13.SBM Kredit.Pe Credit Card

  • Minimum FD Required: ₹2,000
  • Annual Fee: ₹0 (Lifetime Free)
  • Rewards:
    • 3% cashback on all transactions
    • 2% cashback on UPI transactions via Kredit.Pe app
    • 1% cashback on all online transactions
  • Other Benefits:
    • Redeem cashback for up to 75% discounts on Amazon, Flipkart, Swiggy, etc.

14.OneCard Metal Credit Card

  • No joining or annual fees.
  • Earn 1 Reward Point per ₹50 spent; 5x points on top 2 monthly spend categories.
  • Redeem points for cashback (₹0.10 per point).
  • Low 1% forex markup; get with an FD starting at ₹5,000.

15. Super Money SuperCard

  • Credit + UPI convenience with assured cashback.
  • Open an FD from ₹100, earn up to 9% interest.
  • Free SuperCard with up to 5% additional cashback.

How to Apply for an FD-Backed Credit Card: Step-by-Step Process

1. Research and Compare Options

Review the minimum FD requirements, credit limits, annual fees, and reward structures to choose the card that best matches your spending patterns and financial goals.

2. Prepare the Required Documents

While documentation requirements are minimal, keep these ready:

  • PAN Card
  • Aadhaar Card
  • Recent passport-sized photograph
  • Filled application form (available on bank websites or at branches)

3. Create Your Fixed Deposit

  • For existing bank customers: Use net banking/mobile banking to open an FD
  • For new customers: Visit the branch with KYC documents to open both a savings account and fixed deposit

4. Submit Your Credit Card Application

Specify that you're applying for a credit card against your fixed deposit. Most banks have dedicated application forms for secured credit cards.

5. Track Your Application

Application processing typically takes 7-14 business days. You can track status through the bank's customer service or digital banking platforms.

6. Activate Your Card Upon Receipt

Follow the activation instructions provided with your card, usually involving an SMS, net banking confirmation, or phone call to the bank's helpline.

Credit Score Building Strategy Using FD-Backed Credit Cards

To maximize the credit-building potential of your secured credit card:

  1. Maintain 20-30% Credit Utilization: Use your card regularly but keep balances below 30% of your credit limit to optimize your CIBIL score impact
  2. Never Miss Payment Due Dates: Set up automatic payments or calendar reminders to ensure on-time payments every month
  3. Pay Full Statement Balance: Avoid the revolving credit trap by paying your entire statement balance rather than minimum due amounts
  4. Diversify Spending Categories: Use your card across various merchant categories to demonstrate responsible spending habits
  5. Monitor Your CIBIL Score: Check your credit score every 3-6 months to track improvements (many banks now offer free CIBIL score checks)
  6. Gradually Increase Your FD: If possible, increase your fixed deposit amount after 6-12 months to get a higher credit limit, which positively impacts your credit score
  7. Apply for an Unsecured Card After 12-18 Months: With consistent responsible usage, most users qualify for unsecured credit cards within 12-18 months

Frequently Asked Questions About FD-Backed Credit Cards in India

What exactly is a fixed deposit credit card?

A fixed deposit credit card (also called a secured credit card) is issued by banks against your fixed deposit, which serves as collateral. The bank typically offers 80-90% of your FD amount as your credit limit, making it accessible even to those with no credit history or low CIBIL scores.

How much credit limit can I expect on an FD-backed credit card?

Most major Indian banks offer between 80-90% of your fixed deposit value as your credit limit. For example, SBI's fixed deposit credit card provides up to 85% of the FD value as your spending limit, while Kotak offers up to 90% on their secured credit cards.

Is it possible to apply for a regular credit card without having a fixed deposit?

Yes, you can apply for regular unsecured credit cards without a fixed deposit, but you'll need to meet stricter eligibility criteria:

  • Good CIBIL score (typically 750+)
  • Stable employment with minimum income requirements (usually ₹15,000-₹25,000 monthly)
  • Proof of income (salary slips, bank statements, tax returns)
  • Clean repayment history on existing loans

If you don't meet these criteria, an FD-backed credit card is your best path to building credit.

How do I apply specifically for an HDFC credit card against a fixed deposit?

To apply for an HDFC Bank FD-backed credit card:

  1. Create a fixed deposit with HDFC Bank (minimum ₹10,000 depending on card variant)
  2. Visit any HDFC Bank branch with your FD receipt and KYC documents
  3. Fill out the credit card application form, specifying you want a card against your FD
  4. Alternatively, existing HDFC customers can apply through NetBanking by selecting "Apply for Credit Card Against FD" under the Cards section

Can I withdraw or break my fixed deposit while my credit card is active?

Most banks don't allow you to withdraw or prematurely close the fixed deposit that's securing your credit card. If you need to access those funds, you'll typically need to:

  1. Clear any outstanding balance on your credit card
  2. Request card closure
  3. Wait for the bank to process the closure (usually 7-10 business days)
  4. Then initiate the FD withdrawal process

Some banks offer partial withdrawal options while maintaining the minimum required FD amount.

Will my credit limit increase automatically if my FD earns interest?

No, your credit limit is typically fixed at the time of card issuance based on the initial FD principal amount. Interest accrued on your fixed deposit usually doesn't automatically increase your credit limit. However, you can request a credit limit increase by:

  1. Creating an additional FD
  2. Requesting the bank to link the new FD to your existing credit card

What happens if I can't pay my credit card bill?

If you default on payments:

  1. The bank will first charge late payment fees and interest on the outstanding amount
  2. For continued non-payment, the bank has the right to recover dues from your fixed deposit
  3. This is actually an advantage compared to unsecured cards, as it prevents long-term damage to your credit score

Can I upgrade from an FD-backed credit card to a regular credit card?

Yes, most banks offer upgrade paths after you demonstrate responsible credit behavior:

  1. Use your secured credit card for 12-18 months
  2. Make all payments on time
  3. Keep credit utilization below 30%
  4. Check your CIBIL score (aim for 750+)
  5. Apply for an unsecured credit card with the same or different bank
  6. After approval, you can choose to close your secured card and retrieve your FD, or keep both cards to increase your total credit limit

Conclusion: Is an FD-Backed Credit Card Right for You?

Secured credit cards backed by fixed deposits offer an excellent entry point into the credit card ecosystem for:

  • Young professionals starting their credit journey
  • Individuals with no credit history
  • People recovering from past credit issues
  • Freelancers and self-employed individuals with irregular income documentation
  • Students looking to build credit profiles early

By understanding the options available and using these cards strategically, you can build a strong credit foundation that opens doors to premium unsecured credit cards, favorable loan terms, and better financial opportunities in the future.

Remember, responsible credit card usage is key to financial success. Use your FD-backed credit card not just as a payment tool, but as a stepping stone toward greater financial flexibility and opportunities.